M. C. JAIN, J. - (1.) THIS revision petition raises the following question : " Whether or not the amount payable under sub-section (2a) of section 7 of the Rajasthan Sales Tax Act, 1954, as it stood before the amendment made on April 7, 1979, is tax as defined in the Act and whether any penalty under section 16 (1) (b) of the Act as it stood between May 4, 1964 and May 2, 1969 can be imposed for any delay in payment of such amount ?" The Board took the view that the payment of tax under section 7 (2a) is by way of advance payment and they are not in the nature of tax and as such no penalty can be imposed in respect of such non-payment under section 16 (1) (b) At the relevent time, section 16 (1) (b) was as under : " 16. Offences, penalties and prosecutions, etc.- (1) If any person, - (b) has without reasonable cause failed to pay within the time allowed any tax, fee or penalty; or"
(2.) THIS was introduced with effect from May 4, 1964 and was deleted on May 2, 1969. So the question is as to whether the assessee failed to pay tax within the time allowed. If the assessee failed to pay then section 16 (1) (b) would be attracted. The liability to pay tax within the time allowed arises, under sub-section (2a) of section 7 which reads as under : " (2a) Notwithstanding anything contained in sub-section (2), the State Government may by notification in the Official Gazette require any dealer or class of dealers specified therein, to pay tax at intervals shorter then those prescribed under sub-section (1 ). In such cases, the proportionate tax on the basis of the last return shall be deposited at the intervals specified in the said notification in advance of the return. The difference, if any, of the tax payable according to the return and the advance tax paid shall be deposited with the return and the return shall be accompanied by the treasury receipt, or receipt of any Bank authorised to receive money on behalf of the State Government, for the full amount of tax due shown in the return. " This was introduced with effect January 29, 1963. It would appear from the above provision that the State Government is empowered to issue notification in exercise of its power under section 7 (2a) requiring any dealer or class of dealers to pay tax at intervals shorter than those prescribed under sub-section (1) of section 7 which provides that every registered dealer and such other dealer as may be required to do so by the assessing authority by notice served in the prescribed manner, shall furnish prescribed returns, for the prescribed periods, in the prescribed forms, in the prescribed manner and within the prescribed time to the assessing authority. So the dealers are required to comply with the notice served on them in accordance with sub-section (1 ). Sub-section (2a) further provides that the tax is required to be deposited at the intervals specified in the notification in advance of the return and the return shall be accompanied by the treasury receipt or receipts of any bank authorised to receive money on behalf of the State Government. The assessee, therefore, is required under sub-section (2a) to pay tax at the intervals specified in the notification. It may be mentioned that the sales tax is recovered along with the sales and so by the notification the Government is empowered to call upon the dealer or class of dealers to pay tax at shorter intervals. This is not in the nature of advance tax. Tax has already been collected by the dealer and under the notification dealers are required to pay that recovered tax before filing of the return and where return is filed then treasury receipts are required to be accompanied. If the dealer fails to deposit the tax at shorter intervals then it can be said that the dealer has failed to pay tax within the time allowed. As such, such dealer would incur the liability of penalty under section 16 (1) (b ). My answer to the question, therefore, is that the amount payable under sub-section (2a) of section 7 is tax and if the tax is not paid or deposited within shorter intervals as required under the notification issued by the Government, then such a dealer incurs the liability of penalty under section 16 (1) (b ). The revision petition of the department is, therefore, allowed and the question is answered as above. In view thereof the case is sent back to the Deputy Commissioner (Appeals) for decision in accordance with the view taken by this Court. Petition allowed. .;